Federal Extension for Tax Payments

Notice 2020-17 was superseded by Notice 2020-18.  See our March 24, 2020 post.

On March 18, 2020, the IRS issued Notice 2020-17 which delays the due date for tax payments but, unfortunately, does not delay the due date for filing 2019 tax returns.

The due date for making federal income tax payments due on April 15, 2020 is postponed to July 15, 2020 for payments by individual taxpayers who owe up to $1 million (and C corporations that owe up to $10 million).  For this purpose, payments due on April 15, 2020 include both balances due for the 2019 tax year and estimated tax payments due for the first quarter of the 2020 tax year.

Unfortunately, the extension in Notice 2020-17 applies only to tax payments, not to the due date for the filing of returns.  As a result, according to Notice 2020-17, on or before April 15, 2020, taxpayers must still file their 2019 income tax returns or file a request for extension.

The deferral of the due date for estimated tax payments for the first quarter of 2020 from April 15, 2020 to July 15, 2020 does not apply to estimated tax payments for the second quarter of 2020.  Therefore, according to Notice 2020-17, estimated tax payments for the second quarter of 2020 will still be due on June 15, 2020. 

State governments must now decide whether they will offer separate relief related to the due date for state income tax payments.